Student Questions - International Marketing Question from Anonymous: MarketingProfs Question 8752

Topic: Student Questions

International Marketing Question

Posted by Anonymous on 7/22/2005 at 1:27 PM ET 25 Points

How appropriate is it for governments to help drum up business for their companies abroad? Shouldn't commerce be completely separate from politics?

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Posted by michael on 7/22/2005 at 2:05 PM Member

If a government is involved in negotiating trade policy they either have to ignore the stakeholders(businesses) or take input from them.

Only 2 options. Which is better?
Posted by steven.alker on 7/22/2005 at 8:15 PM Accepted

Economic policy is a consequence of politics, which is in turn run by politicians who want continue to get elected. As the largest influence on the electorate tends to be the economy, politicians will do whatever they think is expedient to support the economy. Ergo governments try to drum up support and directly support or interfere with business.

The fact that they invariably make more of a mess by doing so rather than letting the market do its job is a function of the desire of government to be seen to “Do something”

Personally, I’d rather they left most things alone and did little. We’ve always been better at looking after our money and our enterprises than any government.

Steve Alker